The skyrocketing London housing bubble will result in a quarter of all homes in the capital costing more than £1 million by 2030.
The London housing bubble was identified by UBS as the biggest housing bubble in the world in 2015. The average UK house price is also expected to jump to £557,444 by 2030.
As prices go up, they will continue to drive wealth inequality.
By 2030, the divide between housing ‘haves’ at the top and ‘have nots’ at the bottom will be even wider than it is now,” said Paul Cheshire, LSE professor and author of the Property Millionaires report.
Those who can get on the ladder will see the value of their house go up and up and up, whilst those stuck renting will pay out more and more every year. Landlords, who are raking in more rent all the time, will be able to buy more houses, which they will then charge even more rent for – and on and on goes the equity inequality spiral.
But if the bubble bursts and house prices go into decline, the entire economy will suffer. Inflated house prices have been the basis of the UK recovery since the 2008 crisis.
Private sector renters, unable to afford a home and wrung dry by landlords, are footing the bill of a growing bubble – and they’ll probably also be expected to pay the costs of it bursting.
An increase in house prices across the capital will also speed up the process of gentrification that is driving low-income, long-term residents from London.
Kill The Housing Bill, National Demonstration. Midday, 13th March, Lincon’s Inn, London.
Kill The Housing Bill website.
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